Buying a 50% 3yr revenue CAGR platform at 15x earnings
Crucially, no direct competition, and market doesn't know this company is turning into a platform (yet). Net cash balance sheet and set to grow free cash flow by triple digits.
The 22nd pick has now entered the Sleep Well Portfolio, as planned in the deep dive.
The stock rose 50% while I was writing up the report, and has surged 3,000% in the last four years. But now that I understand deeply the potential and the fading risks, I am not hesitating.
You can expect:
high reinvestment opportunities with 50% returns on investments (ROIC)
aligned management with high ownership and excellent execution
mission-critical products to slow to change end-users
unfocused competition and high barriers to entry
squeaky clean balance sheet
low valuation
fading risks
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Let’s discuss why this European technology platform improves the current Sleep Well Portfolio below. 🎯
